Plan your retirement lifestyle

Obviously this depends on the lifestyle you desire and how long and active your retirement is likely to be. Ideally, you don't want your money to run out of energy before you do.

First estimate is how much it would cost you to live for a year in retirement. In short the key steps are:

1. Establishing your current expenses.
2. Deducting expenses you'll no longer pay.
3. Adding new or increased expenses.
4. Identifying one-off costs.
5. Establishing your retirement time frame.
6. Calculating the amount you'll require.

Some things to remember:

• The impact of inflation - $1,000 today won't go as far in five or ten years.
• Income or draw down – you may use your lump sum purely to generate income or you may also gradually draw it down over the years.
• One-off expenses – don't forget there may be major purchases in the early years of retirement, such as a new car or a holiday.
• The pension – you may be eligible for a full or part pension.

Based on where you are now and your current investments you can calculate your retirement lump sum. 

• This will give you a ballpark figure based on varying annual rates of return.
• You may be closer than you think. Either way, an ANZ Financial Planner may be able to help.

Depending on your time frame there are a number of options available to you. Some will be more appealing than others.

These include:

• Delaying your retirement and working longer to increase your lump sum. You may even qualify for Work Bonus (find out more at www.centrelink.gov.au).
• Selling the family home and downsizing or moving to a less expensive area. Learn more about selling your home.
• Taking advantage of strategies, such as Transition to retirement.
• Increasing your level of investment. Learn more about investment strategies.
• Developing a more aggressive investment strategy (this will carry risks).
• Revise your ideal retirement lifestyle.
• Discussing the pros and cons of all of the options with a professional Financial Planner.

You can also find more information and some helpful tools and calculators at www.moneysmart.gov.au.

Planning your retirement and understanding how much income you will need and how to get it can be complex. Fortunately, our specialists can help you develop your strategy and explain it in plain English.

An A-Z Review^® with an ANZ Retirement Banking Specialist: ANZ Retirement Banking Specialists can help you review your position. Knowing where you stand may make the decision to retire a little easier. They have extensive knowledge of the options available to you and starting with an A-Z Review^® to explore your needs, they can examine your everyday banking and recommend a solution to support your plans. Request an A-Z Review^® at your nearest ANZ branch.

An ANZ Financial Planner could help you determine if you want to work a little longer or indeed retire now. They can examine your likely income in retirement and how to maximise it. They can also help you with strategies such as Transition To Retirement, which will allow you to work less or save more for retirement. This may help you trial your retirement or even boost your Super without diminishing your cash in hand. Your first appointment is complimentary and without obligation. Make an appointment with a Financial Planner.